Occupation interest or occupational rental is the amount payable by the party who occupies the property whilst they are not the owner.
The amount payable is usually equivalent to the rent which would be charged in respect of the property and as with most rentals, the amount
would include rates and levies (in respect of a Unit in a Sectional Title Scheme) however excludes utilities such as lights, water and gas
and services such as internet and security contracts.
It is important that your sale agreement clearly specifies the date of occupation (if not on transfer) the amount of occupational rental to be paid
and precisely what that includes and excludes.
A lot of agreements state that risk in and to the property passes to the Purchaser when they take occupation yet the Seller continues to pay
insurance until date of transfer. This poses the danger that the Seller’s insurer may repudiate a claim for any damage done after occupation
if the agreement provides that the Purchaser is in fact the person carrying the risk and not the Seller.